A lobbying coalition formed by the Advantage Travel Partnership and the Specialist Travel Association (Aito) has called on the chancellor to recognise the economic challenges currently affecting the outbound travel sector.
The groups, which formed the lobbying partnership last month, highlighted how small and medium enterprises provide “vital employment” and “economic support” within their local communities ahead of the autumn statement on Thursday (November 17).
Chancellor Jeremy Hunt is set to announce tens of billions of pounds worth of spending cuts and tax rises in the budget statement, which had originally been due to take place on October 31.
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Advantage and Aito argue outbound travel firms could “not take full advantage of the Coronavirus Jobs Retention Scheme because dedicated staff had to continue working to process amendments and cancellations” and therefore many now find themselves “saddled” with debt.
In the joint statement, they also said there were “significant benefits” to be had from the flexibility created by the United Kingdom leaving the European Union in relation to industry regulation.
The statement said: “The delivery of a simplified and cohesive alternative to the complex web of regulation that currently governs the industry would not only enhance consumer protection but also impose fewer costs on operators. The released capital could then be invested in people and skills that are essential to the future of the industry.”
Aito chair Chris Rowles called for a more “cohesive level of regulation” instead of looking to the government for money, arguing this would release the “large amount of capital currently held by regulators”.
“The existing overlapping regulatory layers do not afford more consumer protection,” he said. “They simply serve to withhold finance that could better be used to drive growth, ensuring an even larger contribution to both local and national economies.”
Julia Lo Bue-Said, chief executive of The Advantage Travel Partnership, said: “We need to do everything we can to demonstrate the significant size and shape of our industry, and the role it plays in driving fiscal prosperity as opposed to a perceived narrative that it’s about money leaving the country.
“In 2019, the outbound travel sector contributed £6.9bn to the UK’s tax revenue. With the industry due to grow by 15% by 2027, its contribution to the fiscal health of the nation can be enhanced if it is able to take advantage of the less restrictive red tape in a post-Brexit environment.”